Underwriting Profit Rises as Lloyd’s Navigates Competition

Global Insurance Desk: Lloyd’s of London turned in a solid first-half performance for 2026 even as competition intensified across the market and rates continued to ease. Gross written premium climbed 6.9% to £34.7 billion, driven largely by volume growth from both new and existing syndicates that more than offset a market-wide risk-adjusted rate reduction of 6.7% and some adverse foreign-exchange effects from a stronger sterling.

The combined ratio improved to 90.8% from 92.5% a year earlier, lifting underwriting profit to £1.9 billion from £1.5 billion. A lower major claims ratio of 6.8% helped the result, reflecting a quieter period for large losses in the first six months. The underlying combined ratio, which strips out major claims, edged up slightly to 84.0%, a sign that the softer pricing environment is beginning to show through.

Profit before tax came in at £3.5 billion, down from £4.2 billion in the same period of 2025. The decline stemmed mainly from weaker investment returns of £1.8 billion compared with £3.2 billion previously, as unrealised losses on the fixed-income portfolio followed a rise in yields amid geopolitical and inflationary pressures. Those investment losses remain unrealised and have not weakened the market’s claims-paying ability. Central solvency coverage strengthened further to 503%, while the market-wide ratio held steady near 199%.

Chief Executive Patrick Tiernan described the half-year as one of continued underwriting strength and resilience despite ongoing uncertainty. He also noted that the Middle East conflict is not currently expected to become a material capital event for Lloyd’s. The results, drawn from Lloyd’s half-year report released in early September, underline how the market is navigating a more competitive landscape while still generating attractive underwriting margins.